The cryptocurrency leading the rebound while Bitcoin stagnates at $111.000

While Bitcoin retreats after the Fed's announcement, a memecoin linked to Donald Trump leads the rally with a 20% increase in just a few hours.

The U.S. Federal Reserve announced on Wednesday, October 29, a 25 basis point reduction in its benchmark interest rate, placing it in the range of 3,75% to 4%. The decision, anticipated by analysts and market participants, marks the second rate cut this year and is accompanied by the announcement that The quantitative tightening (QT) program will conclude in December. 

In theory, both moves should favor risk assets, including cryptocurrencies. However, the immediate market behavior has been more complex.

Bitcoin's subdued reaction after the rate cut

Bitcoin, which was trading around $116.000 before the announcement, briefly fell below $111.000 and stabilized at $111.470 at the time of writing. 

The bearish reaction of the leading cryptocurrency contrasts with the usual narrative that links rate cuts to a greater appetite for alternative assets. Although Bitcoin has historically responded strongly to changes in monetary policy, as happened after the emergency cuts in March 2020 and the first rate cut of 2025, announced in September, this time the movement was more subdued, suggesting that the market had already priced in the Fed's decision. 

The end of QT, meanwhile, represents a significant structural change. This program, which began in 2022, has drained nearly one trillion dollars of liquidity from the financial system through the maturation of bonds without reinvestment. Its conclusion could free up capital for more volatile assets, such as cryptocurrencies, in a context where monetary policy seeks to stimulate spending without compromising stability.

Donald Trump's official memecoin takes the lead

While Bitcoin adjusts to the new macroeconomic conditions, a cryptocurrency with a completely different profile has captured market attention. This is TRUMP, a memecoin symbolically linked to President Donald Trump, which has seen a 20% surge in recent hours. Priced at $8,29 and with a market capitalization of $166 million, TRUMP is leading the rebound among the most traded digital assets, according to CoinGecko data.

Memecoins, by definition, are not backed by traditional technical or economic fundamentals. Their value is usually derived from viral narratives, cultural references, or public figures. In this case, TRUMP is positioned as a speculative asset that capitalizes on the president's political visibility and the emotional dynamics of the crypto market. Its 24-hour trading volume exceeds $2.300 billion, indicating an unusually high level of activity for a token of this type.

Furthermore, TRUMP's current performance contrasts with that of other cryptocurrencies that have also shown signs of recovery. Zcash (ZEC), focused on transaction privacy, rose 12% daily, while Pump.fun (PUMP), another speculative token, advanced 11%. Pi Network (PI), with a more structured focus on mobile adoption, also registered a 35% weekly increase, although its daily reaction was more moderate.

These types of movements suggest that, during times of macroeconomic transition, investors seek alternatives that combine narrative, volatility, and short-term potential. Although Bitcoin remains the benchmark of the crypto ecosystem, its more stable behavior may cede prominence to tokens with a greater capacity to generate buzz and attract speculative capital in the short term.

The new monetary policy is driving the next wave in the crypto market.

The cryptocurrency market is undergoing a profound transformation following the Federal Reserve's announcements and its more expansionary monetary policy stance. Experts believe this opens the door to greater liquidity in digital assets, while the end of QT removes a significant source of pressure on the markets, creating an environment conducive to more sustained appreciation of cryptocurrencies in the coming months.

In this context, figures like Michael Saylor have once again issued bold predictions about the future of Bitcoin. 

During the Money 20/20 event, the founder and CEO of Strategy stated that Bitcoin could reach $150.000 before the end of the year and reach one million dollars within a four- to eight-year timeframe. His thesis is based on increasing institutional adoption, the development of new investment products, and a structural shift in risk perception.

Bitcoin and the crypto market face a new chapter

The day after the Federal Reserve's announcement makes it clear that the crypto market is in a transitional phase. While Bitcoin adjusts its price in response to macroeconomic signals, other cryptocurrencies are seizing the moment to attract attention and capital. TRUMP, with its 20% surge, has become a symbol of this dynamic, where narrative can be as important as fundamentals.

The end of QT and the rate cut have created a more favorable environment for risk assets, although the immediate reaction has been mixed. Predictions from figures like Michael Saylor offer a long-term perspective that contrasts with short-term volatility. Taken together, these elements paint a picture where liquidity, narrative, and market structure intertwine to define the direction of cryptocurrencies in the coming months.